Beauty and barber shops :
the trend of labor productivity
Output per hour of persons employed
in these shops rose at an annual rate
of 0.8 percent between 1972 and 1984,
in line with the productivity trend
for other personal service industries
HORST BRAND AND ZIAUL Z . AHMED
Output per hour of persons employed in the beauty and
barber shop industries rose at an average annual rate of
0.8 percent between 1972 and 1984 .1 Other industries with
a high personal service component show roughly comparable trend rates, including the hotel and motel industry .
Output of beauty and barber shops remained virtually
unchanged between 1972 and 1984, while hours dipped
0.6 percent a year . (See table 1 .) The comparative weakness
in output and hours was linked to sharp contractions in the
number of barber shops. Beauty shops recorded some gains
in output and a small long-term rise in hours .z
The output-per-hour trend rates for the two industries
combined, as well as for beauty shops separately, mask
pronounced year-to-year fluctuations . These, in part, reflected short-term volatility in the productivity mainly of
beauty shops . Such volatility has probably been ?inked with
lags in the adjustment of labor inputs to output changesaccounting for a relatively tight supply of labor in relation
to output in "good" years, and for excess supply in "off'
years . In beauty shops, productivity fluctuated between a
rise of 8 percent (in 1984) and a drop of 6 percent (in 1976) .
The gains were associated with output rising more than
Horst Brand And Ziaul Z. Ahmed are economists in the Division of Industry Productivity and Technology Studies, Bureau of Labor Statistics .
hours (or with hours declining)--except in 1981 when productivity increased because of a decline in output that was
less than a decline in hours. Losses were all linked with a
decrease in output accompanied by additional hours.
A change in the productivity trend in the two industries
occurred after 1976 . Between 1972 and 1976, output per
hour fell in both industries ; in beauty shops, it decreased at
an average annual rate of nearly 4 percent. Subsequently, it
rose 2 .4 percent a year . The productivity drop during the
1972-76 period was to some extent associated with a strong
increase in the service capacity of beauty shops, as indicated
by expanding self-employment-accompanied by a change
in hair styling fashions that reduced certain styling service
requirements . The productivity rise after 1976 was linked
with declining self-employment, and with fashion changes
that called for more styling services .
Demand and output
Beauty shops render up to 12 distinct types of services ;
barber shops up to eight . Workers in both industries mainly
cut hair; many establishments confine their service to hair
cutting . In addition to haircuts, full-service beauty shops
offer permanents, coloring, conditioning, and manicures ; a
few offer pedicures . A limited number of shops also perform
facials and other cosmetical skin treatments . They also fit
21
MONTHLY LABOR REVIEW March 1986 a Productivity in Beauty and Barber Shops
and service wigs . Their patrons often include men. The
range of barber shop services is generally narrower, although styling and shampooing of men's hair have increased
somewhat in importance . Women are also served .
Service output of beauty shops did not display a notably
strong long-term trend, rising at an average annual rate of
1 .4 percent between 1972 and 1984 . Service output of barber shops declined at a rate of 4.8 percent a year during that
period . The decline in barber shop output was somewhat
erratic. The long-term uptrend in beauty shop service output
obscures a rather sharp falloff between 1972 and 1976 that
was subsequently reversed . Until 1976, beauty shop service
output dipped 3.3 percent a year ; thereafter it rose 2.6 percent a year . Neither the output of total consumer services
nor of the consumer service industries for which the Bureau
of Labor Statistics computes pertinent measures so strongly
reversed trend during the decade (average annual rates, in
percent) : 3
1 972-84
1972-76
1976-84
All services, except
government . . . . . . . . . . . . . .
4 .7
3 .7
5 .2
All consumer services . . . . . . . .
3.6
3.5
3 .3
Beauty shops . . . . . . . . . . . . . . .
Barber shops . . . . . . . . . . . . . . .
Hotels, motels . . . . . . . . . . . . . .
Eating and drinking . . . . . . . . . .
Laundry and drycleaning . . . . .
1 .4
-4 .8
3 .9
2 .7
-2 .8
-3 .3
-4 .5
3.0
3 .1
-6 .6
2 .6
-5 .6
3 .5
2 .2
-1 .9
Among reasons is that beauty shops are subject to changes
in hair styling fashions, and these were quite far-reaching
during the 1970's . Such changes have often shifted some
elements of hair care from beauty and barber shops to the
home (do-it-yourself), and vice versa.
Trade publications data and interviews with industry representatives confirm that the mix of services offered by
beauty shops changed significantly between 1972 and 1984,
as styles changed . In the late 1960's and early 1970's, long
hair became popular and required more attention by hair
stylists than the fashions that followed . Bouffant hairdos,
which entail much back-combing ("teasing") and setting,
hence additional labor, were still popular. 4 After about
1972, shorter hair and the "natural look," requiring less
styling and setting, came to be preferred, somewhat diminishing the need for professional styling . 5 Women now
tended to visit beauty shops chiefly for trimming of their
hair, often washing it themselves . This reduced the time
needed for such services as shampooing and setting of the
hair. b Hair coloring, which had been popular during the
early 1970's, declined in relative importance as the "natural
look" gained favor. The demand for "wash and wear" permanenting rose strongly throughout the 1970's, because it
permitted minimum maintenance of hair style and lessened
visits to beauty shops .
Moreover, longer hair among men came into fashion, and
men who preferred to have their hair professionally
22
Table 1 . Productivity and related variables in the beauty
and barber shop industries 1972-84
11977=1001
Year
Beauty and
barber shops2
Beauty shops,
Pro-
duothlty
out-
All
person
hours
Produethity
W
All
person
hours
.
1972 . . . . . . . . . . . . . . . . . . . . .
110.1
103 .9
94.4
105 .0
108.6
103 .4
1975 . . . . . . . . . . . . . . . . . . . . .
1976 . . . . . . . . . . . . . . . . . . . . .
100 .1
94.3
94.5
91 .3
94.4
96.8
98 .7
95 .0
97.6
94.4
98 .9
99 .4
1973 . . . . . . . . . . . . . . . . . . . . .
1974 . . . . . . . . . . . . . . . . . . . . .
106.2
106.2
102.1
99 .6
96.1
93.8
100.7
101 .4
106.8
101.5
1977 . . . . . . . . . . . . . . . . . . . . . 100.0
100.0
100.0
100.0 100.0
1979 . . . . . . . . . . . . . . . . . . . . .
108.4
100.4
107 .4
91 .6
91 .9
109.2
108.3
1978 . . . . . . . . . . . . . . . . . . . . .
104.7
108 .0
1960 . . . . . . . . . . . . . . . . . . . . . 106.2
1981 . . . . . . . . . . . . . . . . . . . . .
1982 . . . . . . . . . . . . . . . . . . . . .
1983 . . . . . . . . . . . . . . . . . . . . .
1984 . . . . . . . . . . . . . . . . . . . . .
Average annual percent change:
1972-84 . . . . . . . . . . . . . . . . . .
1979-84 . . . . . . . . . . . . . . . . . .
114.7
113.1
120 .0
111 .7
0 .9
1 .5
106.2
107.2
105.1
103.6
101.4
100.9
119.4
119.7
99 .5
107 .2
1 .4
0 .5
2.3
0.8
103.6
105.3
105.6
106.0
100.1
100.0
101 .6
98 .3
102.9 103.6
100.7
114.1
104.5
109.8
108.5
96 .2
103 .8
0.8
0.2
-0.6
0.5
99.9
97.8
0.8
91 .5
90 .3
0.3
1 Standard Industrial Code 723 .
2 SIC 723 and 724 combined.
groomed increasingly visited beauty shops .8 "Unisex"
salons, usually featuring limited services common to the
hair styling needs of both sexes (hair cut, permanent wave,
and shampoo), spread . The expansion of unisex salons, with
their emphasis on walk-in, no-wait service (no appointments), represented a basic marketing shift; and has been a
factor in the persistent decline in the number of barber
shops.9
The change in fashions and the resultant shift in the services performed by beauty and barber shops apparently did
not much affect labor requirements . The proportion of labor
costs in beauty salons' total operating costs averaged around
60 percent throughout the period . While permanenting
gained and hair coloring lost in relative importance, the two
together have evidently accounted for roughly one half of
the work performed in beauty shops. The relative importance of shampooing, conditioning, and trimming of hair
seems to have changed little over the period . 10 The range of
barber shop services generally remained narrow, with haircuts outranking their other services . However, hair styling
has increasingly added to the quality of barbers' hair cutting
service . II
The fashion changes that occurred in the early 1970's
loosened the traditional relation between beauty shop services, household incomes, and changes in the age composition of the female population . 12 The age distribution of
employed women age 35 to 54 changed little, and this
group, according to an industry survey, has the greatest
probability of visiting beauty shops and the highest frequency in doing so . The proportion of employed women in
this age group declined from 38 percent in 1972 to
34 percent in 1977, then rose to 37 percent in 1984 .13 Overall, employment of women rose at an average annual rate of
3 .3 percent between 1972 and 1984, and median income (in
current dollars) of women working full time increased at an
estimated rate of 8 percent a year . The rise in women's
employment and income proved paradoxical . It often meant
that less time was available for visits to beauty shops, and
more hair care was performed at home . Moreover, many
women apparently preferred unisex salons, offering no-frills
service. However, women could afford to patronize fullservice salons more frequently ." In general, according to
the survey, the frequency of beauty salon visits rises with
income . Yet, pressure of time may reduce the services requested or desired by the client.
Despite the increase in the output of beauty shops since
the mid-1970's, constant-dollar receipts of both beauty and
barber shops declined steadily as a proportion of total personal consumption expenditures for services, falling from
1 .2 percent in 1972 to 0.7 percent in 1982 .
Employment and industry structure
Employment in beauty and barber shops, including payroll as well as self-employment, totaled 692,000 persons in
1984 . It did not, on balance, change significantly over the
1972-84 span . Hours declined at an average annual rate of
0.6 percent, partly reflecting a continual shift to part-time
schedules .
Annual employment and hours data for barbershops are of
but limited validity . 15 However, pertinent data collected by
the Bureau of the Census for census years show that the
number of barber shops declined 25 percent between 1972
and 1977 . The number of paid employees dropped 17 percent over that period, with a further 25-percent decrease
indicated for the 1977-83 span . Self-employment, as indicated by the number of proprietorships and partnerships,
dropped by just over one-third between 1972 and 1983 .16
Census data show that the great majority of barber shops
do not employ wage or salary workers. The one-sixth which
do account for close to one-half of receipts . Of barber shops
with payrolls, one-fifth employs half of the payroll employees in the industry . Most of the others engage one or
two paid workers, with the owner or owners also working.
Employment in beauty shops, which totaled about
591,400 persons in 1984, rose at a rate of 1 .1 percent a year
over the 12-year period . It increased even in years of declining service output, except in 1981 when it dropped sharply,
and in 1974 when it remained unchanged from the previous
year. Hours responded somewhat more closely to movements in output, rising at a rate of 0.5 percent between 1972
and 1984 . For 1982, the BLS estimates that nonsupervisory
beauty shop workers averaged 29 .6 hours per week, reflecting a high part-time component, and that part-time schedules accounted for 39 percent of employed workers. 17 This
represents a far higher proportion than for employed workers generally, of whom only 13 percent were on voluntary
part time (in 1984) ; or for service workers (other than in
private households), of whom 18 percent worked part time .
While two-fifths of all beauty shops employ wage or
salary workers, they account for four-fifths of the industry's
total receipts . On average, beauty shops with payrolls employ four workers. However, 60 percent of the payroll employees work in only 30 percent of all beauty shops, averaging eight workers per shop . In addition, the owner or owners
also perform beauty services (industry sources believe
90 percent do so) .
Self-employment in barber shops dropped much more
sharply over the 1972-83 period (35 percent) than payroll
employment (25 percent) ; and it rose a bit more in beauty
shops (15 percent) than payroll employment (14 percent) . It
was mainly the small beauty shop with one or two paid
employees whose numbers dwindled . It is of interest to note
that self-employment in beauty shops attained a peak in 1980
that was 19 percent above the previous high, reached in
1972 . But in 1983, self-employment was 4 percent below
the 1980 mark . The leveling off in beauty shops' payroll
employment was much more moderate .
While total employment (all persons) in beauty and barber shops combined did not change significantly between
1972 and 1984, employment in industries with a large personal service component generally rose rapidly . In general,
in industries that may be defined as consumer-oriented services with a high personal-service component, employment
increased at an average annual rate of 3 .8 percent between
1972 and 1984, or by 53 percent. 18
Both barbers and hair stylists-often referred to as cosmetologists-are skilled workers, and are required to obtain
up to 1,800 hours of training in most States, as well as to be
licensed . While hourly earnings do not compare favorably
with the average for private nonfarm industries or for service
industries generally, comparisons are not entirely valid because beauty and barber shop workers receive tips, and are
generally paid on a commission basis ." However, there is
a large reserve pool of licensed but inactive hair stylists,
estimated by industry observers at several times the number
actually working. The potential competition tends to constrain pay increases . z°
Efficiency and tools of the trade
No official data on the capital expenditures of the beauty
and barber shop industries are available . However, the Bureau of the Census reports the value of shipments by manufacturers of barber and beauty chairs, other furniture, and
equipment (including hair clippers) for the two industries .
The value of such shipments amounted to $47 .5 million in
1982 ; this represented a decline from both 1977 and 1972
when the pertinent figures are adjusted for price changes.
Beauty and barber shop personnel, of course, use many
kinds of tools manufactured in a broad variety of industries,
so that the above figure for the heavier types of equipment
understates the two industries' total equipment outlays.
Trade sources indicate beauty shop expenditures of
$46.4 million in 1982 for appliances, such as hand dryers,
23
MONTHLY LABOR REVIEW March 1986 * Productivity in Beauty and Barber Shops
and for such durable sundries as shears and scissors ." That
would suggest total equipment expenditures of close to
$100 million in 1982 by the two industries . (No reliable
estimate for outlays for structures and structural fixtures can
be offered .)
Barbers and hair stylists use a variety of powered and
unpowered handtools, often in conjunction with small electrical appliances (such as heat lamps), as well as shampoos,
tints, and conditioning solutions in performing their work .
There have been and continue to be improvements in both
the equipment they use and the solutions they apply. These
improvements, however, are designed primarily to facilitate
adaptation to changing hair styles, rather than to reduce
labor requirements per patron served for the same hair style
or category of service .
The use of cordless, rechargeable clippers and trimmers
allows the operator greater freedom of movement. It is debatable whether these devices have lessened unit labor requirements . Industry observers in the barbering trade, where
the electric clipper was introduced long ago, doubt that this
device has significantly reduced the time needed for men's
or boys' haircuts, although it is much less laborious to use
than the unpowered clipper, which it replaced . Similarly,
shampoo machines, introduced in barber shops 15 to
20 years ago with the expectation that they would save time,
do not significantly lessen the time needed for the average
haircut, although the machines may make the service more
agreeable to the customer .22
Electric blowers have tended to replace dryers . They are
easier to manipulate in conjunction with blow drying or
styling. Blowing is thought to be less quick than heat drying
but conforms more readily with so-called "wash-and-wear"
hair styling and the "casual" hair styles in fashion among
both women and men. More than a decade ago, formalized
hair-setting practices required operators to use setting lotion, pins or rollers, and dryers . The practice, and the fashion that gave rise to it, are no longer popular, thereby reducing labor requirements . However, some establishments (and
patrons) continue to prefer the more formalized hair styling
practices and dryers . 23
Combs made of better plastics are now more pliable and
run more easily through the hair, and last longer. Brushes
are now easier on the scalp, more specialized to type of
hairdo, and also last longer . Shears are shorter to give the
operator greater control in trimming hair; they also are made
of better metals, require less frequent sharpening, and produce a cleaner cut. Easier to use curling irons have also been
introduced .24 Industry observers generally agree that these
developments have not significantly reduced unit labor requirements, although operator effort has been eased by
them . 25
This also holds generally for the solutions applied in
washing, setting, conditioning, and tinting of hair. Thus,
shampoos clean the hair, but they also tend to dry it out.
Additives have been developed which inhibit this drying
process. Permanent wave solutions and tints are more gentle
and do less damage to the hair's molecular structure .26 Tints
are now manufactured in the form of creams rather than
liquids, which tends to improve the hair's appearance . But
the hair stylist must still divide the hair every 16th of an inch
for proper tinting to reach the roots. The improved tint has
not materially shortened the time required for the work ."
Permanent-wave solutions have been developed that time
permanents automatically and permit the hair stylist to remove the curling rods without testing the curl for proper
setting. In principle, this shortens labor requirements for
this particular service . However, because of the variance in
hair texture, the stylist may be reluctant to follow the manufacturer's instructions to the letter . She or he may be
guided by, but not entirely rely upon, the automatic setting
prescribed by the manufacturer . The stylist will generally be
less concerned with saving time than with the quality of the
service rendered to the patron, although in busy beauty
shops there may be conflicting pressures.
Technological changes occurred during the decades prior
to the period studied here that led to the expansion of the
beauty shop industry and the contraction of barber shops .2s
Thus, the advent of the permanent-wave machine in the
1920's shifted women's hairstyling from the home to the
market . The "cold wave," a chemical means of curling hair
in conjunction with curlers, accelerated the shift in the late
1940's and 1950's . By contrast, the invention of the safety
razor, and its diffusion when its price dropped after the
patent had expired, shifted shaving from the barber shop to
the home ; the electric razor, widely marketed first during the
1930's, completed the shift. Thereafter, the work of barber
shops was by and large confined to hair cutting. Beauty
shops have almost always been under competitive pressure
from hairstyling products for home use, but generally they
have been able to overcome this pressure by improving
quality of service and of the service environment.
Outlook
It appears likely that the basic skills of hair stylists and
barbers will continue to resist, as they have in the past, the
kinds of technological change that incorporate them in mechanical devices. Industry observers do not foresee technological innovations on the scale of the permanenting machine, discussed earlier, which fed the expansion of the
beauty shop industry prior to the 1972-84 period . Industry
observers also believe that hair styling and barbering, being
highly personalized services, should not be surrounded by
impersonal technologies and "gadgetry ." Hand-held tools of
the beauty and barber trades will probably continue to become better adapted to hair styling and trimming tasks, and
the chemical applications required for setting, conditioning,
and coloring of hair should continue to become more serviceable .29 But it is not clear that they will be more laborsaving than tools currently in use.
Certain organizational (or structural) changes in both industries have occurred (and should continue to occur),
which tend to standardize operational practices and set models of managerial efficiency . Thus, as of 1983, 19 firms
listed by the U .S . Department of Commerce franchised (or
operated) more than 2,000 beauty and barber shops. In
addition, training services were offered as part of exclusive
product-sales franchises to more than 5,000 shops .3o
Consulting services are now available to assist in setting
up and equipping salons . They offer a variety of services,
such as architectural and interior design, advertising pro-
grams, and managerial and financial advice .31 Salon management systems have been widely accepted by the larger
shops. Their originators provide computer software and ad-
vice in its use. The business and financial side of salon
management may thus increasingly come to be handled by
outside firms under contract with the salon owner. In turn,
performance standards of employees more in line with operating costs may be more readily formulated and may improve operational efficiency in both industries, as the standards diffuse .32
1:1
FOOTNOTES
1 The two industries for which productivity is discussed here have been
designated as sic 723 (beauty shops) and sic 724 (barber shops) in the
Office of Management and Budget's Standard Industrial Classification
Manual, 1972 . Beauty shops are primarily engaged in beauty services ;
barber shops are primarily engaged in furnishing barber and men's hair
styling services . Combination beauty and barber shops are classified as
sic 723. Beauty schools and barber schools are included in the respective
industries .
A separate productivity measure for barber shops has not been published
because of the limited reliability of employment data .
Average annual rates of change are based on the linear least squares
trends of the logarithms of the index numbers. The measures of productivity will be updated and included in the annual BLs bulletin, Productivity
Measures for Selected Industries .
2 For an earlier study of productivity in beauty and barber shops, see Jean
Alexander Wilburn, "A Contrast in Productivity Trends Within Personal
Services : The Beauty and Barber Shop Industries," in Victor R. Fuchs and
Jean Alexander Wilburn, Productivity Differences Within the Service Sector (New York, National Bureau of Economic Research, 1967). pp . 55109. The study covered the 1939-63 period, but used census-year rather
than annual data . The Wilburn study and BLS findings compare average
annual rates of change, in percent, for 1939-63 and 1972-82 as follows :
Barber Shops
1939-63
1972-84
Current dollar receipts . . .
5.7
Real output . . . . . . . . . . . .
Employment . . . . . . . . . . .
Real output per person . . .
0.5
-0 .1
0.6
Price . . . . . . . . . . . . . . . . .
5 .2
Beauty Shops
1939-63
1972-84
1.5
7.8
9.3
-4 .8
-3 .5
-1 .3
4.0
2.5
1 .5
1 .4
1 .1
0.2
7 .0
3 .8
7 .5
3 The rates of change are derived from constant-dollar personal consumption expenditures for services published by the Office of Business
Economics, U .S . Department of Commerce . The figures for consumer
services are derived from constant-dollar personal consumption expenditures for services, Office of Business Economics, U .S . Department of
Commerce . Also see footnote 18 .
4 Modern Beauty Shop, February 1972, p. 45
5 Modern Beauty Shop, January 1973, p. 40 ff .
I Industry information. According to an advertisement by the Wella
Corporation (Modern Beauty Shop, February 1974, p. 84), "no fuss, wash
and wear" hair styling was becoming popular. There was also a demand for
changeable styling and associated paraphernalia, such as hot combs and hot
rollers. Because of a greater chance of hair becoming damaged, a trend
toward conditioning of hair developed to regain and retain its normal
appearance and protect it from damage .
I Information from National Hairdressers and Cosmetologists Association, St. Louis, Nio.
8 Information from the Beauty and Barber Supply Institutes, Englewood,
NJ . See also The Wall Street Journal, May 1978, p. 40 .
9 Beauty and Barber Supply Institute .
1° See the annual surveys of the professional salon market in Modern
Salon and its predecessor publication, Modern Beauty Shop Magazine . The
market surveys show beauty shop suppliers' purchases from manufacturers, by product classification . The publisher confirms that the surveys are
indicative of the volume of beauty shop services to which the product
classification pertains . The proportions (in percent) of distributor purchases
of key products (here excluding cosmetics, of which a large part is sold at
retail by beauty shops, as well as furniture and equipment) changed as
follows over the 1972-82 period:
1972
1976
1982
Total . . . . . . . . . . . . . . . . . . . . . . . . .
Permanents . . . . . . . . . . . . . . . .
Hair color . . . . . . . . . . . . . . . . .
Shampoo . . . . . . . . . . . . . . . . .
Conditioners . . . . . . . . . . . . . . .
Hair goods and accessories . . .
Held-held electrical appliances
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
100
17
35
15
13
11
10
100
20
28
18
16
3
15
100
34
22
18
17
1
9
11 In a recent pricing sample of the Consumer Price Index, styling
figured in one-third of all haircuts performed in barber shops.
12 See Amelia Bassin, "The Consumer Revolt-What's In It For You?"
Modern Beauty Shop, January 1973, p. 40 ff .
13 1983 Salon Client Survey, conducted by Vance Research Services,
Lincolnshire, 1L . Data are from the Bureau of Labor Statistics .
14 See the "1983 Salon Client Survey," Modern Salon, September 1983,
P. 92 .
15 See footnote 1 .
16 Internal Revenue Service, Statistics of Income, Partnership Returns
and Sole Proprietorship Returns, various years.
17 Occupational Projections and Training Data, Bulletin 2206 (Bureau
of Labor Statistics , 1984) , pp . 52-53 .
18 Consumer-oriented service industries with a high personal service
component (other than government services) are here defined as including
the following industries : hotels and motels (sic 70) ; personal services (sic
72); motion pictures (sic 78); amusement and recreation services (sic 79);
health services (sic 80); educational services (sic 82); social services (sic
83); and membership organizations (sic 86) .
19 For the salon owner profile, published annually in Modern Salon, see
August 1984 issue, p. 82 ff .
2° Licensing surveys by American Hairdresser estimated the number of
licensed hair stylists to exceed the number actually working by a factor of
5 in 1973-74 and 1975-76.
21 Facts and Figures, 23rd Annual Survey of the Professional Salon
Market, 1982 .
22 Information from Beauty and Barber Supply Institute . See also the
advertisement for Oster Corp ., and Wahl Clipper Corp ., in various issues
of Modern Beauty Shop and Modern Salon .
23 Information
from National Beauty and Barber Manufacturers Association. See also advertisements of Styling Research Co . in Modern Salon,
November 1982, and Duhl, Duck Inc ., Modern Salon, April 1984 .
241bid . See also advertisements for shears, switch blades, and razors,
for example, by Jatai International, Los Angeles, CA, in Modern Salon,
September 1984 .
25
MONTHLY LABOR REVIEW March 1986 o Productivity in Beauty and Barber Shops
25 Apparently none of the pertinent advertisements have claimed that
labor time savings would result from the use of the products advertised .
Industry observers, however, say that the use of better service-adapted
styling tools is considerably less tiring than the use of more conventional
tools-considering that the stylist stands behind the chair a good part of the
day and moves her or his arms in a distal position .
26 Industry sources . See also footnote 7. "Permanenting, coloring,
bleaching and tinting can all take their toll on the quality of hair," advertisements by the Wella Corp ., Modern Beauty Shop, February 1974, p. 84 .
27 National Beauty and Barber Manufacturers Association .
28 See Wilburn, "A Contrast in Productivity Trends," p . 61 ff .
APPENDIX:
29 Information from National Beauty and Barber Manufacturing Association, National Hair Dressers and Cosmetologists Association, and PeopleMedia, Reading, PA .
30 Andrew Kostecka, Franchise Opportunities Handbook (U .S . Department of Commerce, September 1983), pp . 32-37.
31 See, for example, The Raylon Resource (Reading, PA, Raylon Showrooms) . See also Salon Today, various issues . Information from Cutco
Industries, Jericho, NY ., and other industry sources.
32 See, for example, The Computerized Salon Management System (Cincinatti, ott, The Mikal Corp ., 1985) . The annual "Facts and Figures"
articles in Modern Salon also tend to standardize business operations in the
industry .
Measurement techniques and limitations
Indexes of output per hour of all persons measure the
change in the relation between the output of an industry and
the hours expended on that output . An index of output per
hour is derived by dividing an index of output by an index
of hours .
The preferred output index for personal service industries
would be obtained from data on the quantities of services
provided by the industry . The quantity of each type of service provided would be weighted (multiplied) by the time
required to provide one unit of each type of service in some
specified base period . Thus, services that require more labor
time would be given more importance in the output index
than services that require less .
Such data, however, are not available for the beauty and
barber shop industries . Real output of these industries was
estimated by removing the effects of changing prices from
the current-dollar value of industry receipts . Because an
adjustment for price changes usually lowers the dollar
value, such a series is referred to as a deflated value measure . The deflator used here is the Consumer Price Index for
beauty shops and for barber shops . These two CPI's price a
total of 25 types of service and 51 specific services, as well
as certain additional pricing factors . The more important the
service, the greater the probability of its being priced .
The index of hours for beauty and barber shops is for all
persons-that is, the index represents hours for paid employees, as well as for partners and proprietors . As in all of
the output-per-hour measures published by the Bureau of
Labor Statistics, hours and employment are considered homogeneous and additive . Adequate information for weighting the various types of labor separately are not available.
The indexes of output per hour do not measure the
specific contribution of labor, capital, or any other single
factor . Rather, they reflect many interrelated influences
such as changes in technology, capital investment, design
and layout of workplaces, skill and effort of the work force,
and managerial ability.
The output measure is derived from data on annual receipts published by the Bureau of the Census . The allpersons-hour measures are derived from data on employment and hours originated by the Bureau of Labor Statistics
and supplemented by data reported by the Internal Revenue
Service, and from special tabulations compiled for the Bureau of Labor Statistics by the Bureau of the Census .